tv Bloomberg Markets Americas Bloomberg September 18, 2017 10:00am-11:00am EDT
♪ vonnie: here are the top stories we are covering from the bloomberg and around the world. today, president makes his first visit to the u.s. as president. he will deliver a speech calling for major reforms at the global organization. will it fall on deaf ears? then, in u.k. politics, a showdown may be growing between prime minister theresa may and foreign secretary boris johnson. his firing. lead to and, a conversation with bridgewater associates founder to find out what qualities keep things a great leader needs. the unitedtraight to nation's assembly and president
donald trump. only becauseit is of the united nations that that turned out to be such a successful project. so, i want to thank ambassador haley for that marvelous introduction and your fighting for american interests on the world stage. on behalf of the cohost countries, i would also like to think the secretary -- to thank the secretary-general who has been fantastic. we reaffirm our commitment to united nations reform. reform is what we are talking about. i applaud the secretary-general in his unveiling a reform project we support. to find ways that the united better can be better and development, management, peace,
and security. the united nations was founded on truly noble goals good these include affirming the dignity and worth of the human person, and striving for international peace. the united nations has advanced these goals in so many ways, feeding the hungry, providing disaster relief, and empowering women and girls in many societies across the world. yet, in recent years, the united nations has not reached its full potential, because of pure rock receipt and miss manners -- because of bureaucracy and mismanagement. staff has more than doubled since 2000. we are not seeing results in line with this investment. i know that, under the secretary-general, that is changing, and it is changing fast. that is why we commend the
secretary general and his call for the united nations to focus more on people and less on bureaucracy. we seek a united nations that regains the trust of people around the world. in order to achieve this, the united nations must hold every level of management accountable, protect whistleblowers, and focus on results rather than process. to honor the people of our nations, we must ensure that no one, no member state, shoulders a disproportionate share of the board in -- the burden militarily or financially. we must also ask that each peace keeping mission has clearly defined goals and metrics for measuring success. it is our job to show the value to everyone. we encourage the
secretary-general to use is authority to cut through the bureaucracy and make from decisions to advance the united nation's mission. we encourage all member nations to look at ways to take bold stands within eye towards changing business as usual and not being beholden to ways of the past which are not working. mr. secretary-general, the united states and member states present today support this great reform vision. we pledge to be partners in your work. i am confident that, if we work together and champion truly bold reforms, the united nations will emerge as a stronger, more effective, more just, and greater force for peace and harmony in the world. thank you mr. secretary-general. i look forward to advancing
these shared goals in the years to come. it is a great honor to be with you today. thank you. [applause] you have just been listening to president donald trump in his first address to the united nations. he is saying that they are committed to reforming the united nations. he also had some complaints, saying that that u.n.'s regular budget has increased by 140% and that its staff has doubled since the year 2000. u.n. to hold every level of management accountable, and he also spoke about peacekeeping missions and make sure they have metrics to evaluate success. joining us now is our executive editor for international government. he is in london. particularlys about reforming the united nations.
we will get to the more substantive portions of what donald trump like to speak with the other members about later in the week, but was everything he said today anticipated? >> yes. it is no secret that the trump administration is very focused on u.n. reform. not to mention his skepticism in the past which is well documented. he also wants the un security council to get what he wants done on north korea, so it is a bit of a balancing act here. i think you see just how targeted the u.s. focus is on unitarian, peacekeeping organizations and part of the u.n. which has faced a lot of criticism. area where the trump
administration believes there could be better commitment from the other member countries. haleyyou mentioned nikki in the secretary-general who have forged -- nikki haley and the secretary-general who have forged a close partnership. yes, as i said, i think the way she has decided to zone in on this one particular area, the peacekeeping area, that is in area where the united states leaves it can get more support -- the leaves it can get more support -- the united states believes it can get more support. korea, the mood music today is diplomacy if you listen to rex tillerson. >> yes, that is right. this week will give a platform
to some of the more pragmatic evil in this administration. -- pragmatic people in this administration calling that this is not a time for reckless action. the will also be very interesting to see what south korea have to say as well. the real question is how fiery the language will be when trump addresses the u.n. tomorrow at the beginning of the assembly. i think that will very much set the tone for the week, the type of light which he uses. mark: -- type of language he uses. vonnie: what is the main reason he is saying -- staying for four days? ,> he is a new yorker at heart so perhaps he feels are much at home there. there is a lot of work he can get done there. he is meeting with latin
american leaders and with emmanuel macron. so, this is an extremely useful time for them to touch base with as many colleagues as possible. ofis probably the equivalent two weeks of traveling the world , so that is part of it as well. still, it is ironic considering just how skeptical trump has been in the past about the value of the u.n., so it is ironic that he is spending so much time at the u.n. vonnie: will the u.s.'s foreign policy position should when the week is over -- shift when the week is over? there is also venezuela and syria and iran. there are a lot of of foreign-policy positions which could be clarified this week. >> that is right.
there is a sense that perhaps the new chief of staff is imposing more discipline on the white house. there is a slightly more coherent message coming out of the white house on many policies here. it is important to bear in mind that this is still a relatively young administration. so, we will hear a lot of commentary coming from trump and others this week. it stands to reason that the more we hear, the more the position will be defined. i think what europeans want to administration reaffirming its commitment to the sanctions deal. right now, there is a question mark about if we will get that. importanty is very for the europeans here. tok: emmanuel macron wants
remind the world that france is a nuclear power, too. it is one of our more interesting stories today. macron wants to be involved in everything. i guess we will see that this week, what we? -- won't we? >> yes, this will also be his first general assembly. i imagine he will show off a little bit of swagger on the global stage. angela merkel a few weeks ago mentioned germany's role in helping to find a solution to the north korean crisis. will be interesting to see if macron has anything to say about that as well. there are always these back channel communications going on about north korea. there is concern if he will recommit to the 2015 nuclear deals with iran. there is concern he could walk away from it.
>> i think they will press him on that very closely. mark: john, thank you. vonnie: our executive editor for international government, inc. you. we are now about 41 minutes into the u.s. trading day. julie is you to bring us up-to-date. julie: we have records again for the major averages after that streak from last week where the s&p 500 exceeded 2500 for the first time. the nasdaq is joining the party today as well. it is about 0.4%. in terms of what is driving it, there is some individual stock action driving it. orbital hek for about seven point billion dollars which as rocket propulsion to its business. get a 22% going to premium. if you look at the value of the
deal including debt, it is $9.2 billion. it is interesting that northrup is also higher. it is clear shareholders seem to be happy about the deal. also, fertilizer makers are interesting. islooks like fertilizer going up on the s&p 500. this is an european fertilizer maker which seems to have started things off. are seeing limited downside to nitrogen prices. at the same time, we have other analysts commenting on prices firming along with chinese fertilizer prices rising on a 10 month basis. this is helping these fertilizer companies. finally, we are taking a look at don's as well. we see this continuing climb in yields head of the central bank
meeting on wednesday. they are not anticipated to announce any type of great change the perhaps a wind down of its balance sheet. we have this nine basis point climb in yields over the past week as we have seen a selloff in bonds and the buying we have seen in the stock market. today's minutes left in session. the stoxx 600 gaining after that second day. -- after its second day of gains. the sterling is holding for the moment. earlier, it rose after the brexit vote last week. also risen for about four weeks now. theresa may will speak in florence, italy on friday. that will be a big interest for traders.
very quickly, eurozone inflation confirmed at 1.5. bloomberg intelligence says that tepid wage growth is likely to leave both measures stagnant for a while which could cause the ecb from tightening monetary policy until 2019. they will get to choose the amount of additional stimulus getting thrown at the economy. vonnie: a lot coming up this week in terms of economic data. oil slipping after spending some time about $50 a barrel last week. more on that coming up next. this is bloomberg. ♪
♪ mark: live from london, i am mark artan. vonnie: in new york, i am vonnie quinn. time for futures in focus. traders are already eyeing the fed's potential rate decision this week. oil is drifting below $50 a barrel as refineries restart after harvey. joining us is tim. obviously, traders are waiting for that statement on wednesday and everything that comes with it. >> there is not any meaningful economic reports coming out today. it is going to be fairly quiet, and i imagine the lead up is going to be fairly quiet. ultimately, depending on the language being spoken at that
meeting, it could have a decent impact on the market. the probability that we are going to see a december rate hike has declined over the -- ages -- a september rate hike has declined over the past week. there has been indications of some confidence going into the september meeting that there could be a rate hike, in which case i see the dollar will see some gains. fallingwhat about oil below $50 a barrel again. what are traders saying? >> we kind of have the recent affect of the hurricanes. i think in the intermediate term, the fundamentals that the market was trying to balance are actually pretty bullish. the bearish short-term fundamentals which were the refineries that went off-line, are back near full production
now. so, that situation is kind of cleansing itself. i imagine we will see record exports from u.s. energy companies. one thing lost in all this onricane is is the data friday about the drawdown on the number of rigs. that makes the reduction happening six of the last eight weeks. we could be at a point of equilibrium with the price in the oil market right now. vonnie: tim evans, thank you for that. that was today's futures in focus. an agreementhead, to buy orbital atk. purchasehis pricey coming up next. this is bloomberg. ♪
♪ mark: this is "bloomberg markets ." i am mark barton in london. vonnie: in new york, i am vonnie quinn. northrop grumman has agreed to buy orbital atk for $7.8 billion in cash. it could be a premium to orbital's code. they will add orbital's expertise in rocketry and 's defenseo northrop electronics. ed, thank you for joining us. first, explain what is orbital. >> it is a is this that develops a lot of missile propulsion systems. they are also very big in space. that is something that northrop grumman and others are very keen to expand in.
vonnie: will there be any regulatory concerns here? >> i think there will be some. close in thell first quarter of 2018. if you compare that to other aerospace defense deals this year, they said they think it will take until the back end of 2018. there might bess a slightly lower hurdle to get over. mark: it is rather pricey at each share. >> if you look at the premium, it is just over 25% for the average. it definitely does not look excessive. that said, this is a prized asset which gives you that exposure in space which everyone wants to bulk up in. in that context, you could see a bid here. once the deal gets the great, a
deal typically gets done. there is lots of noise around boeing. i think this is potentially something they could do. mark: it seems to be part of a broader reshuffling in the aerospace industry. >> this is the second deal we have seen in this space in a few weeks. i think there are other deals we could see coming. we have spoken recently on the show about why that is. the supply making his own efforts to consolidate should it could have a big more -- to consolidate. it could have a bit more pushback on pricing squeezing. company lookwill a like in 10 years time? >> i think this question of space is a crucial one. the future of warfare could very much beef off in -- very much be
fought in that sphere rather than what we think of as traditional warfare. i think you already see a push towards that area of drones. this could push them to become a market leader in that space. mark: orbital is up about 20%. ed, thank you. coming up, a conversation with ray dalio. the principles that have governed his career as one of the world's for most investors. you will not want to miss this. this is bloomberg. ♪
let's check in on the first word news. president trump calling for reform at the united nations. he spoke before the general assembly today. pres. trump: in recent years, the united states -- the united nations has not reached its full potential while it has increased its budget by 140% and its staff has doubled since 2000. we are not seeing results in line with this investment. will president trump speak before the general assembly tomorrow. we are tracking hurricane maria which is listening islands already battered by hurricane irma. is heading towards islands already battered by hurricane irma. has upgraded its
outlook. it says the british economy will grow 1.4% in 2018. 1.6% this year. he says that manufacturing has picked up. speakingesident obama on wall street. he was paid about $400,000 last month to speak to the clients of northern trust. last week, he spoke to the carlyle group. axt week, he will speak at health care conference. global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. i am and that chandra. i am emma chandra. vonnie: breaking news for equity. officials are looking into possible insider trading
accusations. again, what facts shares are -- equifax shares are trending those familiar with the company say that top officials sold stock right before the announcement that the company had been hacked. io speaks about mistakes and how learning from mistakes is what sets us apart. he is speaking about his new and what heples," has learned from his own mistakes. he spoke with erik schatzker. that bill gates is great, elon musk, they are all shapers. .ack dorsey, reed hastings
someone i admire greatly is mohammed younis. really, the inventor of social enterprise. he knows how to make businesses out of philanthropy. a vision, these are visionaries who are shapers. it is very difficult in government. >> would you put mario draghi on that list? i would put mario draghi on that list and also ben bernanke. veryson who spoke up at a difficult time and made a personal sacrifice to do the right things.
so yes, i would put some of those economic holocene makers on the list. the political system has its challenges. >> it sounds to me like the unifying threads among all these people that you and fire -- admire are, on the one hand, independent thinkers, and on the other hand are encouraged to pursue one or both of those things. >> we should all like those people, shouldn't we? everybody has their role. that is a thing i also learned. everyone has their own nature .nd their own role it does take a team. them for being in the go from visualization to ask rise asian -- actualization.
all of those people need other people with different natures and different abilities. the conceptual, big picture thinker needs someone who can pay attention to the details. the creative person needs a reliable person who is not creative. that goes back to the nature of knowing what people are really like. question back to the before. do you want to know what you are like really? do i want to know what you are like and what i am like? can we build on that so that we can compensate for our weaknesses? we all have weaknesses, and so we want to build on company relationships. >> any companies that have your adoration? about do not know much other companies. other psychologists have come in
and examined our party and said there are comparisons. i would say netflix with reed hastings, who has my admiration. in termsey and twitter of that radical transparency earned my admiration. so, there are some, but i do not an expert on it. vonnie: that was erik schatzker alongside ray dalio. mark: breaking headlines on brexit. prime minister theresa may was speaking aboard a flight to ottawa. boris johnson wrote a 400 word essay over the weekend where he set out his glorified vision of post-brexit britain. in that, he said that money could go back to the na which is
money we typically give to the eu. once again, theresa may review worst -- rebuked boris johnson over this brexit money. as asee his comments prelude to a possible leadership change. she was asked about johnson's intervention, and she said that boris is boris. more on brexit coming up. this is bloomberg. ♪
s&p 500, cs industries. abigail doolittle is here to tell us why the stock is rallying. when i first started to research the company this morning, it did not look like there was much there, but the stock is on pace for its asked year since 2015. he says it has everything to do with a rallying in their fertilizer prices which they are dominant in that area. is demand outly of india. currently, india is rumored to have a big bid in the market. it is not being filled by suppliers due to the domestic market. it looks like this rally for ureu could last longer. if you look at the spot pricing -- urea could last longer. if you look at the spot pricing, this here is 2017.
green is the average. we see that urea this year is really lagging with the historical pricing, so this is suggesting that urea is going to continue to trade higher. perhaps it will even take some of the other names higher with it? vonnie: what are some of the other names? we have one -- >> we have one in norway, and another in canada. i am pulling this bloomberg chart up as we go. you will see that they are really the dominant country here . the reason for that -- we see cs industries is in white. a big spike higher for them. cs industries rallying in a big way, because all of their revenue in some way or another is touched by urea.
they have more exposure than the other companies. vonnie: fascinating. i will read into what urea is exactly little bit later. mark: breaking news brexit. theresa may is firing back at worst johnson. this was just a few moments -- at boris johnson. this was just a few moments ago on a flight. she was commenting on a article that johnson wrote last week. she rebuked his article. she did not approve his article. let's bring in simon kennedy now. he clearly still has his job. >> there is some rebuke. these are interesting comments from the prime minister. article,ot approve the and she rolled out sending money to brussels. of criticized worst johnson -- boris johnson of revitalizing
this pound talk. what is clear though is that she has not fired him. may expected to deliver a 5000 word speech on friday about her vision of brexit. before she could even get to that, another member of her team sent out a 400 word vision of it. mark: i will not say that he is an enemy of her's, but could closestcloses to her -- to her be more of a threat on the outside? a= -- failed to win that that big parliamentary majority that she hoped for in that snap election. she has been trying to state her own brexit position. for boris johnson, this is a bit of a long game. mark: he is not necessarily popular though.
is it true that he was kicked out of the limelight due to his lack of popularity? >> this is according to one of the co-writers at bloomberg whose story is coming out in the next week. nick timothy lost his job after the election, and he said that there internal data showed that boris johnson was not particularly popular. that's why they made it so much of theresa may during the campaign. that seems to have backfired. johnson is still in the cabinet. he still has that grassroots constituency appeal it seems. mark: friday, are we going to get anything on the brexit deal? theresalation is that may will use her speech in florence to flesh out her plans and request a traditional period after brexit.
is she willing to pay money for that privilege? if she is, then she is back on track for a showdown with gordon johnson.- with boris he has likely had a bit more of a battered week, but he might still be playing the long game. theresa may is still in charge, therese -- if brexit is not looking pretty good, then he can point to his article and say that no one listened to him. mark: simon, thank you for joining me. oft is the eu view ahead prime minister theresa may's speech on friday? spoke -- she started by asking for his assessment on the impact of brexit on the eu versus the u.k.
as a factjust stated is that, if you look at the media, brexit is very much a topic in the united kingdom and less a topic in other member states of the european union. although we are all concerned and worried and sad about this, we have also many other things in our agenda on the european union. there is a greater sense of urgency that we need to do more as europeans to provide more security for our citizens. we need to do more to provide more growth for our citizens, more jobs for our citizens. that we need to solve this incredibly collocated issue of migration. that creates an agenda for europe which goes beyond brexit. it does not mean that brexit is not important, it is extremely important. the future of the eu in 2017 is just as important.
>> we understand that the prime minister, theresa may, will be in florence to give a speech on the 22nd of september. what would you like to hear from her then? >> what i would like to hear is that we continue to look for a solution to this problem without doing any harm to any party. this.d to do it is clear that the rich people have spoken. the are going to leave european union, the let's do as little harm as possible in this process. >> i spoke with the boss of one u.k. pub business recently. he was speaking about posturing at the oligarchs and it european commission is encouraging
european importers to look elsewhere for suppliers. how would you said -- how would you respond to that? there are all these words in the british media, oligarchs, --turing, asus bureaucrats faceless bureaucrats, etc., it does not affect the way we negotiate. we need to solve a huge problem. for the first time in 40 years, a member state is leaving the european union. we have grown together over 40 years. can you imagine how intricate that relationship has become? now we need to disentangle that relationship. it is an incredibly complicated business, and i would like to go about this as businesslike as possible. emotionald not be an process but a very businesslike process. that is the attitude of the commission.
strong words and accusations do not help. we should not be distracted by them. mark: that was our interview with the european union commission vice president. vonnie: time now for our bloomberg business flash. walgreens is ready to tweak its agreements to buy individual stores according to individuals who later with the matter. to persuade the u.s. a deal that the company has been pursuing for about two years. to latest european bank slash the amount that asset managers need to pay for investment research next year. they will charge $24,000 for services involving research, conferences, and some analysts access. that is about 1/6 the price the
bank quarterback in june. the bank quoted back in june. they will explore strategic options. years, stone, in recent has been losing readers and advertisers. vonnie: that is your latest bloomberg business flash. iik: still ahead, mifid starts in january. it comes at a bad time for global investment banks. a tradingould spark execution price were. exclusiveot miss an interview with the president of lumbee a. -- of columbia. he will speak about the crisis in neighboring venezuela and his relationship with president
♪ vonnie: live from london and new york, i am vonnie quinn. mark: and i am mark barton. this is "bloomberg markets." a price war is looming between banks as mifid ii comes into play in january. they may be able -- willing to cut prices to enable trades. we are not talking about research, but we will squeeze in a research question. there is going to be a bit of a price war when it comes to equities trading. >> a looks that way according to executives. it looks like the same exact thing is happening in research as well. execution is going to be the
same thing here. once the starting gun kicks off on january 3, we will see a free-for-all on these ala carte services including research and execution. banks really want to get that market share. vonnie: there could be a race to the bottom in some ways. is there a level it cannot go below? >> we have heard one or two executives say that it could go to zero. whether or not regulators will be ok with that, we just do not know. we do know they are trying to squeeze out those mid tier r ivals. there will basically be to offering -- two offerings, a tiffany's and a walmart. everyone else in between is going to get squeezed. mark: is price going to be the determining in deciding who do trade with?
>> if you go for the lowest price all the time, then yes. sometimes, you want those high-end services though. it will be interesting to see if this works. ii comes at a very difficult moment for the community. >> the market right now has been very calm. it is not great for trading. the markets have already been squeezed for trading, and now they have this. vonnie: on this idea of selling research in a package, it strikes me as very difficult to police analyst access. how'd you give different people different amounts of access at different price ranges? how does that work? >> that will be very interesting to see. that is what we are seeing right now. $5,000.seen one call it is really going to depend.
so far, each bank has been interestingly different about it. mark: teresa kelly, think you for joining us. you for joining us. coming up, the european close. there 35 minutes away from monday session close. to theirs climbing highest point since the early days of august. taking a quick peek at what is happening with currencies, the sterling rally coming to an end today after rising to a post-brexit high on friday. this is bloomberg. ♪
this is the european close on bloomberg markets. ♪ mark: here are the top stories we're covering. mark carney will give a speech this hour as the pound slips from its one-year high. will he drop anymore clues as to when boe will pull the trigger and raise interest rates? we will talk with norway's new about arcticer exploration and get his take on the recent elections where the conservatives barely clung to power. an exclusive interview with the colombian president, juan manuel santos. he will discuss efforts to cut down the drug trade and massive crisis facing his neighbor, venezuela.